Ramesh Kumar Goel v. ITO - Taxpublishers.in

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The Tax Publishers2013 TaxPub(DT) 1959 (Gau-Trib) : (2013) 052 (II) ITCL 0606 : (2013) 058 SOT 0049 Income Tax Act, 1961 --Capital gainsChargeability Purchase and sale of shares--Assessee declared long-term capital gain on sale of equity shares of SCCL and the same was invested in acquiring the residential unit on which exemption under section 54F was claimed. Assessing officer found that assessee was not able to produce the sale details of shares and particulars of broker to whom shares were sold, therefore, he presumed that sale was bogus and the added the surplus arising from transaction as income from undisclosed sources after denying exemption under section 54F. *Held:* Was not justified as, from an over all consideration of the evidences produced by the assessee it was clear that the assessee had acquired the shares and purchase of the said shares was declared by him in the earlier year and that was accepted by the department and the shares were sold through stock brokers at the price quoted at the Stock Exchange at the relevant time and the sale consideration was received by assessee by account payee demand draft, would go to show that the purchase of shares as well as sales thereof by the assessee was established, more so, when the assessing officer has not been able to make out any positive material contradicting these factual aspects. Moreover, merely the finding by assessing officer that the assessee could not identify broker of the shares, could not be a basis of recording the transaction as bogus. Income Tax Act, 1961 Section 45 Income Tax Act, 1961 Section 54F In the ITAT, Guwahati Bench K. K. Gupta, A.M. & K.S.S. Prasad Rao, J.M. Ramesh Kumar Goel v. ITO ITA No. 72 (Gau.) of 2008 A.Y.: 2004-05 2 February, 2012 *Decision:* In assessees favour. Appellant by : Somnath Ghosh Respondent by : S. Bhattacharjee ORDER *K. S. S. Prasad Rao, J.M.* This appeal filed by the assessee having been aggrieved by the order of Commissioner (Appeals) dated 28-1-2008 for assessment year 2004-05 in the case of the assessee. The assessee has raised the sole issue Regarding disallowance of the claim of assessee in respect of capital gains of Rs. 6,33,718 and consequently disallowing the exemption claimed under section 54F of the Income Tax Act, 1961 (hereinafter referred to as the Act). SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1959 (Gau-Trib) : (2013) 052 (II) ITCL 0606 : (2013) 058 SOT 0049

Income Tax Act, 1961

--Capital gainsChargeability Purchase and sale of shares--Assessee declared long-term capital gain on sale of equity shares of SCCL and the same was invested in acquiring the residential unit on which exemption under section 54F was claimed. Assessing officer found that assessee was not able to produce the sale details of shares and particulars of broker to whom shares were sold, therefore, he presumed that sale was bogus and the added the surplus arising from transaction as income from undisclosed sources after denying exemption under section 54F. Held: Was not justified as, from an over all consideration of the evidences produced by the assessee it was clear that the assessee had acquired the shares and purchase of the said shares was declared by him in the earlier year and that was accepted by the department and the shares were sold through stock brokers at the price quoted at the Stock Exchange at the relevant time and the sale consideration was received by assessee by account payee demand draft, would go to show that the purchase of shares as well as sales thereof by the assessee was established, more so, when the assessing officer has not been able to make out any positive material contradicting these factual aspects. Moreover, merely the finding by assessing officer that the assessee could not identify broker of the shares, could not be a basis of recording the transaction as bogus.

Income Tax Act, 1961 Section 45

Income Tax Act, 1961 Section 54F

In the ITAT, Guwahati Bench

K. K. Gupta, A.M. & K.S.S. Prasad Rao, J.M.

Ramesh Kumar Goel v. ITO

ITA No. 72 (Gau.) of 2008

A.Y.: 2004-05

2 February, 2012

Decision: In assessees favour.

Appellant by : Somnath Ghosh

Respondent by : S. Bhattacharjee

ORDER

K. S. S. Prasad Rao, J.M.

This appeal filed by the assessee having been aggrieved by the order of Commissioner (Appeals) dated 28-1-2008 for assessment year 2004-05 in the case of the assessee. The assessee has raised the sole issue Regarding disallowance of the claim of assessee in respect of capital gains of Rs. 6,33,718 and consequently disallowing the exemption claimed under section 54F of the Income Tax Act, 1961 (hereinafter referred to as the Act).